The municipality Karlovo is situated in a valley surrounded by the highest part of the Balkan Mountain (the Troyan`s Balkan and the Kalofer`s Balkan) to the north, Central Sredna Gora to the south-east and the mountain treshold of Koznitsa to the west. It is on the border with Pavel Banya municipality to the east, Apriltsi, Troyan and Teteven - to the north, Pirdop - to the south, Koprivshtitsa - to the south-west, Hisar - to the south and Bresovo - to the south-west. The territory of the municipality is 1089.154 sq.m. The Balkan lowlands railway track and the railway section Plovdiv - Karlovo cross the territory of the municipality. The town of Karlovo is the main town of the municipality. Karlovo municipality includes another two towns - Kalofer and Klisura, and 23 villages. The natural gifts, the historical and cultural heritage of the municipality are quite favourable for the development of the tourism.